Titanium Surges Most Since 1999 After Agreement With Syncrudeby
Stock price surges by almost 80% after agreement announced
Titanium will have `first right' to oil sand heavy minerals
The stock price rose 78 percent to the intraday high of C$1.39 at 3 p.m. Thursday in Toronto, the biggest increase since April 1999.
Titanium will have “first right” to recover heavy minerals from waste generated at Syncrude oil sites using a patented technology it owns, the company said in a release. Syncrude was given a 50 percent interest in the patented technology, which will also extract bitumen from the waste deposited in tailing ponds.
The company spent 10 years negotiating with oil-sands producers including Syncrude, Suncor and Canadian Natural Resources Ltd. to apply its technology, Scott Rattee, former senior analyst at Edgecrest Capital Corp., said in a phone interview.
The stock is “surging today because people are amazed it finally happened,” he said.
The technology could give Titanium access to “several hundred million” dollars a year worth of minerals including zircon and titanium dioxide that are now dumped, Rattee said. The technology also raises bitumen extraction by 2 percent to 3 percent and makes the resulting tailing ponds much cleaner as a result, he said.
Scott Nelson, Titanium’s chief executive officer, didn’t return a phone call seeking comment.
Oil-sands companies, which emit more carbon than traditional oil producers and leave vast swaths of wasteland from their mining operations, have sought to reduce their environmental impact in recent years.